This chapter describes how, as part of its mission to reduce poverty, the World Bank has consistently made about 15% of its investments in the transport sector, believing that this industry contributes significantly to growth and to poverty reduction. These investments are subject to formal economic evaluation, and must be consistent with a country assistance strategy between the bank and national governments at the highest level. For several decades these investments were concentrated on the provision of basic infrastructure - mainly rail (in the early years) and roads. But the bank has recognized that infrastructure investment is not enough, as failure to maintain that infrastructure and inefficiency in the organization of transport services on it have undermined the effectiveness of the investment made. The World Bank has therefore moved progressively to greater concern for the underlying sector institutions and policies, which it attempts to achieve through both loan conditions and direct investments in reform activities.
Abstract